I know it is subject to federal tax, but how about state tax?
- posted
15 years ago
How is FannieMae interest taxed?
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- posted
15 years ago
Freddie Mac & Fannie Mae bonds are not direct obligations of the USA or a USA agency. As such, the states are free to tax the interest income paid on the bonds.
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- posted
15 years ago
I know of no reason that it would not be subject to state income tax.
Remember, the underlying debit is not that of the U S of A.
ChEAr$, Harlan Lunsford, EA n LA
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- posted
15 years ago
The answer is right, but the reasoning is not exact; some GSE debt is state-tax-free, some isn't, and some it depends on the state.
Steve
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- posted
15 years ago
It is now.
R's, John
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- posted
15 years ago
I've never seen a Fannie Mae or Freddie Mac bond that was treated as a federal obligation and therefore not taxable by the states if they so desired. Would you please elaborate.
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- posted
15 years ago
There are GSE's (Government Sponsored Entities) besides Fannie and Freddie, and some of these issue obligations that are not direct obligations of the US (similar to Fannie/Freddie) but are nonetheless state tax free.
A pretty good discussion is here:
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Steve